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Gama? Building, a producer of long bridge components using latest technology wants to move to a larger site due to increase in government funding in infrastructure. They have identified two alternative? locations: Concord and Manchester. Concord would have fixed costs of $800,000 per year and variable costs of $14,000 per unit produced. Manchester would have annual fixed costs of $960,000 and variable costs of $12,900 per unit. The finished items sell for $28,000 each.

a) The volume of output at which both the locations have the same profit? = ___ (round to nearest whole number)

b) Based on the analysis of the? volume, after rounding the numbers to the nearest whole? number, Concord is superior below___ units.

c) Based on the analysis of the? volume, after rounding the numbers to the nearest whole? number, Manchester is superior above ___ units

d) The breakeven point for Concord is ___ and the breakeven point for Manchester is ___

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M92030495

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